Organise finances for a new micro business

1. Ascertain own financial position and ability to provide capital or equity for the business

Realistically detail personal, family or community financial situation showing funds available and commitments already incurred
Determine equity finance and assets available for micro business from personal, family or community sources
2. Determine projected cash flow for the business

Determine level of forecast business activity over a year and the business mix
Estimate establishment costs for the business and repayment schedule for borrowings
Calculate monthly variable and fixed costs needed to conduct business activity over a year
Estimate personal drawings needed from the business
Estimate monthly income generated by the business for a year, based on price per unit item or hourly charge rate for labour
Develop a cash flow budget for the first year of business operation
Seek professional advice to estimate goods and services tax and operating finance required for the business
3. Source required funds to establish the business

Estimate required funding to establish and run the business based on expected sales and activity levels, available finances and commitments
Investigate methods of accessing alternative sources of finance
Identify strategies for meeting financial obligations
Implement plans to access available funds as required
4. Monitor business profitability

Maintain and review monthly expenditure and income records
Compare equity at beginning and end of a year to estimate business performance
Assess financial viability of the business after a year of operation
Seek professional advice on depreciation, insurance and tax implications of the business

There are no formal educational entry requirements for this course.

To support a successful learning experience students will require:

1. Access to a device (desktop/mobile/tablet), reliable internet connection and use of a personal email account.

2. A proposed business idea or opportunity to use as the context for completing practical assessment tasks and observations.

This course includes the unit of competency:

BSBSMB303 Organise finances for the micro business
Students who choose to complete the course assessment may gain credit towards the nationally recognised BSB30315 Certificate III in Micro Business Operations offered by MiTraining.